Q: May I please have your comments on Transcontinental’s earnings
5i Research Answer:
TCL.A recorded a solid earnings beat for the quarter coming in at 43c, beating estimates of 32c. Revenue missed estimates of $691.58M, coming in at $680.4M and falling 3.8% year-over-year. TCL.A stated that the drop in revenue was mostly due to lower volume for its printing operations. TCL.A expects its packaging business "to be a key driver of long-term growth", but short-term demand is weak due to economic conditions. It expects lower volumes for its printing business. Despite the drop in revenue, this was a decent quarter, in line with what the company expected and the cost reduction measures that have been put in place appear to be positively impacting profits.